BUSINESS  ADMINISTRATION 


OF 


State  Institutions 


IN  ILLINOIS 


The  Financial  System  in  Iowa  and  a Report  to  Governor  Charles  S. 
Deneen  on  the  System  in  the  State  of  New  York. 


By  FRANK  D.  WHIPP, ' 

Department  and  Institution  Auditor  of  the  Governor’s  Office 


1908 


SPRINGFIELD: 

Illinois  State  Journal  Co.,  State  Printers 
• 1908 


Digitized  by  the  Internet  Archive 
in  2017  with  funding  from 

University  of  Illinois  Urbana-Champaign  Alternates 


https://archive.6rg/details/businessadminist00whip_0 


^ \c  • — • 


ADDRESS  BY  FRANK  D.  WHIP?  TO  THE  STATE  CON- 
FERENCE OF  CHARITIES,  JACKSONVILLE, 

ILL.,  OCT.  10,  1907. 


Business  Administration  of  State  Institutions. 

In  the  business  administration  of  the  State  Charitable  and  Reforma- 
tory Institutions  of  Illinois,  it  has  not  been  the  policy  of  the  officials  to. 
minimdze  the  cost  of  maintenance  at  the  expense  of  the  thousands  of  un- 
fortunates in  their  charge.  It  is  not  a question  of  how  much  it  costs  to 
support  these  inmates.  The  paramount  aim  is  to  cure  the  afflicted, 
educate  the  delinquent  children,  and  make  better  citizens  of  the  other 
unfortunates.  The  people  of  this  State  want  their  unfortunates  cared 
for  in  the  best  possible  manner. 

Illinois  with  her  56,000  square  miles  of  territory,  27  million  acres  of 
improved  land,  coal  mines,  railroads,  prosperous  hanking  institutions, 
manufacturing  and  commercial  enterprises,  and  more  than  5,000,000  in- 
habitants, is  a State  with  great  resources.  It  is  abundantly  able  to  care 
for  its  wards  in  a respectable  manner  and  the  officials  of  our  State  In- 
stitutions are  endeavoring  to  do  this.  They  are  alive  to  the  pecuniary 
side  of  the  management  of  the  institutions  and  all  of  these  things  are 
being  acomplished  without  extravagance.  They  know  that  the  bills  have 
to  be  paid,  and  unless  expenses  are  kept  within  a reasonable  limit,  the 
appropriations  made  by  the  General  Assembly  will  not  be  large  enough 
to  meet  the  demands.  The  question  of  economy  is  of  vital  importance 
to  the  management  of  our  institutions,  and  it  is  believed  that  our  super- 
intendents  are  doing  all  in  their  power,  within  reason,  to  minimize  the 
cost  of  maintaining  the  inmates. 

A typical  superintendent  makes  it  his  duty  to  inspect  the  garbage 
l)arrels  at  his  institution  every  few  days,  in  order  to  ascertain  whether 
r there  has  been  a waste  of  food,  as  he  must  see  that  everything  in  the  na- 
A ture  of  food  is  utilized ; he  also  keeps  a close  watch  on  the  kitchens  to 
y prevent  any  pilfering  of  staple  articles,  such  as  sugar,  coTec,  tea,  butter, 
j'  etc.  He  is  in  close  touch  at  all  times  with  otlier  departments  in  order 
to  be  cm-tain  that  economy  is  practiced.  He  looks  into  the  method  of 
^ handling,  cooking  and  serving  the  food,  and  has  it  so  prepared  that  it  is 
palatable.  A careful  study  of  the  financial  statements  of  the  snperin- 
tendents  who  have  been  looking  after  these  details,  shows  that  their 
efforts  have  not  been  in  vain.  Their  per  capita  cost  is  always  the  lowest 
and  at  the  sam.e  time  the  inmates  liave  been  well  cared  for. 


4 


In  one  item  alone,  of  expense,  the  State  expects  in  the  future  to  make  a 
great  saving.  The  last  General  Assembly  appropriated  funds  to  modern- 
ize the  heating  and  lighting  plants  at  the  various  institutions.  By  the 
use  of  chain  grates  and  other  new  appliances  there  v/ill  be  a considerable 
saving  in  fuel.  At  Kankakee,  where  they  are  installing  a new  heating 
plant,  it  is  expected  to  save  $20,000  per  annum. 

The  management  of  the  Western  Hospital  for  the  Insane  has  de- 
creased the  cost  of  fuel  more  than  33i/;3%  by  using  chain  grate  stokers. 

Since  January,  1907,  when  the  chain  grates  were  installed  at  Joliet, 
to  June  30,  1907,  the  penitentiary  has  saved  $2,096.10  in  fuel. 

At  the  Soldier’s  and  Sailor’s  Home,  during  the  year  ended  June  30, 
19’06,  the  institution  used  8,423  tons  of  coal  at  a cost  of  $16,530.25. 

During  the  following  year  ended  June  30,  1907,  it  used  8,617  tons  of 

coal  at  a cost  of  $12,873.36,  or  a saving  of  $3,656.89,  although  194' tons 
were  used  in  excess  of  the  plevious  year.  This  saving  is  attributed  to  the 
use  of  modern  stokers  and  also  to  the  fact  that  the  coal  is  purchased  on 
the  heat  unit  plan.  Scientific  tests  are  made  showing  the  heat  vglue  of 
.the  coal  and  bills  are  settled  on  that  basis.  The  test  enables  the  institu- 
tion to  get  what  it  is  paying  for,  no  matter  what  mine  the  coal  comes 
from.  The  coal  from  seme  of  the  mines  does  not  contain  as  much  car- 
bon as  that  of  other  mines,  and  therefore  the  heat  produced  is  not  as 
great. 

During  the  5^ear  ended  July  1,  1906,  the  Eeformatory  at  Pontiac  ex- 
pended $20,560.84  for  coal.  For  the  year  ended  July  1 of  this  year  it 

only  expended  $15,186.98,  or  a saving  of  $5,373.86,  which  is  also  due  to 
chain  grates  and  other  modern  appliances. 

Industries. 

Many  of  the  charitable  institutions  have  installed  industrial  enter- 
prises, and  manufacture  certain  articles  used  in  the  institution.  The  law 
will  not  permit  them  to  manufacture  articles  for  the  market,  but  if  they 
were  allowed  to  do  this,  it  could  be  done  with  profit  to  the  institutions. 
There  is  not  only  the  pecuniary  aspect  to  be  considered,  but  also  the 
mental  and  physical  benefit  derived  from  employment  by  types  of  defec- 
tives deteriorating  in  idleness.  With  many  patients,  to  be  able  to  feel  they 
are  in  some  measure  earning  their  way,  contributes  to  a more  contented 
state. 


Interest  on  Public  Funds. 

Through  the  efforts  of  the  Executive  Department  of  the  State  several 
of  the  banks  in  which  the  institution  money  is  deposited  now  pay  in- 
terest on  daily  balances.  The  profit  thus  accruing  to  the  institutions 
will  amount  to  considerable.  This  new  departure  is  in  line  with  what 
has  been  done  by  the  State  Treasurer  and  by  departments  under  Gover- 
nor Deneen,  in  collecting  interest  on  daily  balances  and  crediting  the 
same  to  the  State. 


5 


Farms  and  Gardens. 

It  has  been  the  policy  of  Governor  Deneen  to  encourage  scientific  farm- 
ing and  gardening  at  our  institutions.  Many  of  them  have  large  farms 
and  are  raising  an  abundance  of  garden  produce  for  institution  con- 
sumption. Some  are  raising  poultry  on  a large  scale.  Hay  and  corn 
are  also  grown  in  large  quantities.  As  a rule,  the  institution  superin- 
tendents favor  the  maintenance  of  large  herds  of  milk  cows,  so  that  the 
inmates  can  be  furnished  with  an  abundance  of  wholesome  milk.  Each 
institution  should  have  a large  farm,  so  that  the  labor  of  the  inmates 
could  be  utilized.  The  Governor  has  advised  the  institution  officials  to 
take  advantage  of  the  soil  experiments  made  at  the  University  of  Illinois, 
to  use  fertilizers  and  select  products  adapted  to  the  available  soil;  and, 
in  all  cases,  to  employ  competent  and  practical  farmers  and  gardeners. 
If  these  suggestions  are  carried  out,  such  institutions  as  the  Boys’  School 
at  St.  Charles,  the  Eeformatory  at  Pontiac,  and  the  two  penitentiaries, 
can  raise  garden  produce  on  a large  scale.  The  five  hundred  thousand 
dollars  appropriated  for  the  new  penitentiary  site  will  enable  the  State 
to  start  this  industry.  If  this  plan  is  feasible,  the  surplus  product 
might  be  interchanged  between  the  State  institutions  at  prices  agreed 
upon  by  the  superintendents.  This  system  is  successful  in  Iowa  where 
the  prices  are  fixed  by  the  State  Board  of  Control.  If  this  industry 
were  carried  out  on  a scientific  basis  it  would  add  to  the  income  of  the 
institutions  and  help  to  make  them  self-supporting.  The  knowledge  of 
farming  acquired  by  prisoners  would  find  them  ready  employment  among 
the  farmers  of  the  State,  who  clamor  in  vain  for  a supply  of  trained 
farm  labor.  In  any  event,  the  experiment  is  worth  trying.  A high 
standard  of  excellence  in  stock  and  farming  methods  would  make 
each  of -these  institution  tracts  of  land  a model  farm,  and  constitute  an 
educational  influence  in  the  agriculture  of  its  locality. 

Financial  System. 

The  question  of  remodeling  the  financial  system  of  our  State  institu- 
tions is  a matter  to  which  the  General  Assembly  should  give  careful 
consideration.  Many  of  the  provisions  in  the  present  law  governing  the 
charitable  institutions,  which  was  enacted  in  1879.  are  obsolete  and  fail 
to  meet  the  requirements  of  modern  business  conditions.  At  the  time 
the  law  was  enacted  the  business  of  these  institutions  was  so  small  that 
their  financial  affairs  could  be  handled  in  the  manner  contemplated  by 
the  law  without  difficulty,  but  since  then  the  institutions  have  increased 
in  number  and  size  until  a modern  up-to-date  law  is  needed.  At  the 
time  our  present  law  went  into  effect  there  were  ten  institutions  under 
the  State  Board  of  Charities,  with  a population  of  2,478  inmates,  while 
now  we  have  seventeen  institutions  with  a population  of  13,474  inmates, 
or  an  increase  of  10,996. 

In  1879  the  Legislature  appropriated  $1,432,494  for  the  support  of 
these  institutions,  while  this  year  the  General  Assembly  appropriated 
$6,588,402 — an  increase  of  $5,155,908. 


6 


For  the  food  item  alone  the  charitable  institutions  expended  during 
the  year  . ending  June  30,  1907,  $640,041.86,  and  the  correctional  in- 
stitutions, $203,193.19,  making  a grand  total  for  food  of  $843,235.05. 
The  quantity  of  the  supplies  purchased  appears  colossal,  but  it  must  be 
borne  in  mind  that  there  are  about  20,000  people  to  be  fed  in  the  in- 
stitutions. Fuel  also  is  one  of  the  largest  items  of  expense  for  our  in- 
stitutions. All  purchases  are  made  by  officials  of  the  twenty  different 
institutions,  some  under  the  bid  system  and  some  on  the  open  market. 
There  has  been  no  uniformity  in  the  grade  of  supplies  purchased  by  the 
institutions,  as  the  policy  of  buying  is  controlled  by  the  officials  of  each 
institution.  For  instance,  some  of  them  consider  it  economy  to  buy  the 
best  grade  of  everything  and  some  purchase  cheaper  articles,  all  depend- 
ing upon  the  judgment  of  the  superintendent  and  trustees  of  each  insti- 
tution. These  problems  have  often  been  discussed  by  members  of  the 
General  Assembly  and  the  officials  of  our  institutions.  At  this  time  I 
am  not  prepared  to  recommend  a plan  for  their  solution,  but  am  satisfied 
that  a change  in  the  law  is  needed. 

There  are  arguments  for  and  against  creating  a State  Board  of  Con- 
trol. Some  contend  that  the  chances  for  wrong  doing  are  fewer  when 
purchases  are  divided  among  twenty  different  places,  and  others  main- 
tain that  it  is  easier  to  keep  a check  on  three  members  of  a Board  of  Con- 
trol than  it  is  to  look  after  the  affairs  of  eighty  officials  and  trustees  of 
the  institutions.  Some  favor  a board  to  consist  of  reliable  business  men 
who  are  experts  in  financial  matters.  One  plan  suggested  is  that,  in- 
stead of  allowing  each  institution  to  do  its  own  buying  of  staple  articles, 
we  have  one  central  agency  by  which  supplies  niay  be  purchased  in  large 
quantities  and  delivered  to  the  institutions  as  needed.  Under  this  system 
uniformity  could  be  secured  in  the  supplies  used  and  purchases  could  be 
made  without  reference  to  the  interests  of  any  particular  locality.  Such 
interests  are  frequently  detrimental  to  the  best  interests  of  the  institu- 
tions. Contingent  funds  could  be  provided  for  the  use  of  the  officials  in 
making  emergency  purchases,  and  requisitions  for  regular  supplies  could 
be  made  quarterly  in  advance.  It  wmuld  relieve  the  officials  of  financial 
details  and  enable  them  to  devote  their  whole  time  to  the  care  of  the  in- 
mates and  if  an  arrangement  could  be  made  to  relieve  the  State  Board  of 
Charities  of  the  function  of  supervising  accounts,  it  could  devote  more 
attention  to  the  broader  humanitarian  phases.  Officials  of  large  corpor- 
ations express  amazement  at  the  methods  provided  in  our  law  for  pur- 
chasing the  supplies  of  the  State  charitable  institutions,  and  say  it  would 
be  better  to  centralize  their  financial  control. 

It  is  almost  too  well  known  .to  call  for  comment,  that  now  no  large 
business  concern  permits  each  department  to  do  its  own  buying  of  sup- 
plies without  some  supervising  control.  Few  are  the  large  corporations, 
the  volume  of  whose  purchases  exceeds  the  aggregate  of  the  supplies  for 
our  State  institutions,  especially  when  it  is  borne  in  mind  that  among 
the  branches  of  the  State  government  which  could  partake  of  the  ad- 
vantages of  this  system  are  six  educational- institutions,  the  University  of 
Illinois,  and  five  normal  schools.  Under  the  present  law,  the  Board  of  • 
Ciiarities  audits  each  quarter  the  accounts  of  the  seventeen  State  institu- 


7 


tionSj  which  accounts  have  already  been  audited  by  the  trustees  of  each'' 
institution.  This  means  that  the  trustees  of  each  institution  practically 
audit  their  own  accounts  before  they  are  paid  by  their  local  treasurer. 
Under  this  system  it  is  impossible  for  any  one  at  Springfield,  repre- 
senting the  State  administration,  to  stop  payment  of  any  irregular  ac- 
count charged  to  ordinary  expenses,  as  no  one  respecting  the  Executive 
Department  passes  on  the  necessity  for  the  expenditures  until  after  the 
bills  are  paid.  The  only  remedy  is  to  stop  payment  by  the  State  Treas- 
urer of  appropriations  for  the  ensuing  fiscal  quarter,  until  the  accounts 
of  the  preceding  period  have  been  adjusted.  This  way  of  adjusting 
matters  should  be  supplanted  by  some  other  remedy.  All  bills  should  be 
properly  audited,  before  payment,  by  some  person  not  connected  with 
the  institutions,  and  if  found  irregular  or  unnecessary,  payment  should 
be  stopped. 

Another  feature  of  centralizing  the  control  of  State  institutions  which 
is  worthy  of  consideration  by  the  General  Assembly,  is  the  manner  of 
handling  disbursements.  It  might  be  practicable  to  have  the  State 
treasurer  pay  all  bills  from  Springfield.  The  treasurer  of  the  University 
of  Illinois  resides  in  Chicago  and  all  checks  are  paid  through  the  State 
Bank  of  Chicago.  If  this  plan  works  satisfactorily  at  Champaign,  why 
could  it  not  be  done  at  Springfield  ? 

In  this  manner  the  state  of  Iowa  handles  all  its  business,  except  checks 
for  the  total  of  the  payrolls,  which  are  sent  to  each  superintendent  by 
the  State  treasurer  on  the  first  of  each  month,  he  issuing  his  individual 
check  to  each  employe. 


System  m Iowa. 

Tw'o  weeks  ago  I went  to  DesMoines,  Iowa,  for  the  purpose  of  making 
a study  of  the  methods  in  use  in  that  state  for  the  government  of  its 
State  institutions.  I first  visited  the  office  of  the  Board  of  Control,  and 
later  went  to  the  hospital  for  the  insane  at  Mt.  Pleasant.  By  thus  visit- 
ing both  the  capitol  of  the  state  and  the  institution  referred  to  I was 
enabled  to  see  the  complete  system.  The  Board  of  Control  makes  all  • 
contracts  for  furnishing  supplies-  except  where  it  delegates  authority  for  * 
small  purchases  to  the  superintendents.  Everything  is  bought  with 
freight  prepaid  and  this  enables  them  to  make  a fair  comparison  in  prices. 
Samples  of  goods  are  submitted  with  the  bids  and  later,  when  the  goods 
are  received  at  the  institution,  they  are  compared  with  the  samples 
on  file  with  the  Board  of  Control.  All  supplies  must  be  purchased  in 
Iowa,  provided  the  prices  are  the  same,  or  lower,  than  those  of  outside 
firms,  but  in  no  event  can  purchases  be  made  outside  at  the  expense  of 
the  State.  Sixteen  tons  of  coffee  are  purchased  at  one  time.  Rice  is 
bought  by  the  ton,  and  $15,000  of  sugar  is  contracted  for  at  one  time. 
Xot  a dollar  in  cash  is  handled  by  the  Board  of  Control.  The  miscel- 
laneous income  at  the  various  institutions  is  remitted  to  the  State  treas- 
urer on  the  first  of  each  month  and  placed  to  the  credit  of  the  institution.  ’ 
The  superintendents,  stewards  and  storekeepers  give  bond.  The  Board  of 
Control  keeps  an  account  with  the  storekeepers  of  each  institution  and  ' 


requires  monthl}^  reports  whi(3li  have  to  be  sworn  to.  The  accountant 
from  the  board  checks  up  the  storekeeper’s  account  twice  a year.  Each 
cook  makes  a weekly  dietary  report,  showing  how  many  patients  have 
been  fed  and  the  quantity  of  provisions  used,  and  this  report  has  to  be 
sworn  to.  Mr.  Cownie  of  the  board  informed  me  that  the  products  of 
the  institution  farms  had  nearly  trebled  since  the  board  was  created. 
(Overproduction  at  one  institution  is  relieved  by  exchange  of  products 
with  the  other  institutions  on  prices  fixed  by  the  board. 

Unlike  Illinois,  the  legislature  of  the  State  of  Iowa  bases  all  appro- 
priations on  a per  capita  allowance.  For  the  insane  it  allows  from 
$144.00  to  $156.00  per  annum  for  each  inmate.  There  are  ten  employes 
in  the  office  of  the  Board  of  Control.  One  accountant  keeps  the  accounts 
of  fifteen  institutions  and  also  checks  the  storekeepers  accounts  at  the 
various  institutions.  The  accounts  of  the. Board  of  Control  and  of  other 
state  officers  of  Iowa  are  examined  by  an  accountant  employed  by  the 
Executive  Council,  consisting  of  the  elective  officers  of  the  State. 

The  arguments  against  creating  a central  board  of  control,  resolve 
themselves  into  the  assertion  that  to  concentrate  such  great  power  in  any 
single  body  of  men  is  unsafe;  that  such  a board  of  business  rather  than 
professional  men  would  be  likely  to  give  too  exclusive  attention  to  the 
business,  to  the  detriment  of  the  medical  side,  of  State  institution  a(^- 
ministration.  But  the  limits  of  my  address  will  not  permit  me  to  go  at 
length  into  the  merits  of  this  contention.  I therefore  submit  it  in  this 
general  form,  along  with  my  presentation  of  the  other  side  of  the  ques- 
tion, for  your  consideration. 

Additional  Boom  for  Inmates. 

In  the  Illinois  hospitals  for  the  insane  there  are  a number  of  inmates 
who  could  safely  be  returned  to  their  homes.  Insanity  is  increasing  so 
rapidly  that  the  room  occupied  by  these  patients  could  be  used  to  ad- 
vantage by  other  patients  who  need  hospital  care.  It  might  be  advisable 
for  the  Legislature  to  provide  for  the  appointment  of  a commission,  to 
act  independently  of  the  institution  officials,  to  examine  into  the  degree 
of  insanity  of  the  inmates  of  insane  hospitals,  and  to  have  those  dis- 
charged who  could  safely  be  returned  to  their  homes.  There  are  also 
quite  a number  of  inmates  in  the  insane  hospitals  who  own  large  estates 
and  could  well  afford  care  in  private  hospitals.  Of  course,  the  wealthy 
pay  their  taxes  the  same  as  other  people,  but  it  would  seem  that  where 
a patient  has  ample  funds  and  desires  private  care,  it  should  be  afforded. 

Two  patients  in  particular  illustrate  this  situation.  At  Bartonville 
there  was  at  one  time  an  inmate  whose  private  estate  w'as  valued  at 
$100,000,  and  whose  repeated  requests  for  private  care  were  denied  by 
his  legal  heirs,  who  compelled  him  to  remain  in  the  public  hospital  until 
he  died.  Aside  from  the  imposition  upon  the  taxpayers,  there  is  in- 
justice in  depriving  a patient  of  special  luxuries  his  means  could  provide 
outside  of  the  institution. 

Today  at  Kankakee  is  a patient  who  has  been  there  25  years,  during 
all  that  time  the  recipient  of  a pension  of  $75.00  a month,  in  addition 


9 


to  a good  private  income.  The  public  cannot  realize,  as  do  the  superin- 
tendents, the  number  of  this  class  of  patients  being  supported  by  the 
State,  and  occupying  room  needed  for  others. 

Quite  a number  of  pauper  insane  in  our  hospitals  are  subjects  of  for- 
eign countries,  and  the  Legislature  should  also  provide  means  to  send 
them  to  their  home  countries.  This  is  done  in  New  York,  Massachu- 
setts, and  quite  a number  of  our  eastern  states.  If  done  in  Illinois  it 
would  result  in  a saving  of  expense,  and  additional  room  in  our  hospitals. 

Some  of  our  institution  officials  are  making  arangements,  by  paying 
higher  salaries,  to  have  employes  and  their  families  live  outside,  except 
where  it  is  absolutely  necessary  to  have  them  in  the  institutions.  This 
is  desirable  not  only  because  it  makes  more  room  for  patients,  but  elicits 
better  service  from  employes,  thus  freed  a portion  of  each  day  from  the 
depressing  influences  of  institution  life.  Facilities  at  the  institutions 
for  getting  to  town  are  better  than  they  were  years  ago,  making  this  prac- 
ticable now. 

IxsANE  IN  County  Almshouses. 

It  is  the  aim  of  Governor  Deneen  to  give  State  care  to  every  insane  per- 
son in  the  county  almshouses  of  the  State,  and  before  he  retires  from 
office  it  will  be  accomplished.  The  last  General  Assembly  passed  a law 
providing  for  the  transfer  of  all  county  insane  to  the  State  which  will 
aid  materially  in  bringing  about  the  desired  results. 

Civil  Service. 

Civil  service  is  an  important  factor  in  the  successful  management  of 
our  State  institutions.  Generally  it  gives  satisfaction  and  the  institu- 
tion officials  are  well  pleased  with  it.  It  certainly  has  been  a step  in  ad- 
vance. The  Board  of  Civil  Service  Commissioners  is  doing  much  to- 
ward a successful  management  of  our  institutions. 

Auditing  Accounts. 

The  auditing  of  the  accounts  of  the  State  charitable  institutions  is  be- 
ing carefully  done  by  the  State  Board  of  Charities.  The  inspections  are 
always  made  without  notice  to  the  officials.  On  visiting  an  institution, 
the  first  duty  of  the  inspector  is  to  count  the  cash.  Then  he  verifies  the 
books,  in  order  to  see  whether  the  money  received  and  disbursed  has  been 
properly  accounted  for.  Written  reports  of  these  inspections  are  always 
made  and  if  anything  irregular  is  apparent  it  is  taken  up  and  adjusted 
by  the  State  Board  of  Charities,  with  the  responsible  official. 

^ During  the  year  1905,  Governor  Deneen  employed  me  as  one  of  his  as- 
sistants in  his  office  and  it  is  my  duty,  when  called  upon,  to  make  special 
investigations  of  accounts  of  institutions  and  departments.  Through 
the  efforts  of  the  Governor,  in  having  the  accounts  of  the  various  de- 
partments audited,  he  has  succeeded  in  recovering  for  the  State,  a sum 
of  over  $150,000,  since  I have  had  charge  of  the  work  of  auditing.  This 
sum  does  not  include  any  part  of  the  claim  against  the  Auditors  an  ex- 
Treasurers  amounting  to  $321,000  or  the  claim  against  the  Ilinois  Cen- 


10 


tral  Eailroad  Co.  These  examinations  are  not  perfunctory  but  are  thor- 
ough in  every  particular.  They  have  a tendency  to  make  those  in  charge 
more  careful  with  their  trusts,  and  at  the  same  time  secure  uniformity 
in  accounts,  which  is  important  in  making  comparisons  of  the  expenses 
of  one  institution  with  another.  A new  departure  in  the  Executive  De- 
partment is  the  examination  of  the  sufficiency  of  bonds  of  State  and  in- 
stitution officials.  All  sureties  are  required  to  schedule  enough  property 
to  cover  the  amount  of  the  bond,  and  their  financial  responsibility  is  in- 
quired into  before  the  bond  is  approved  by  the  Governor.  When  changes 
are  made  in  the  treasurers  of  the  institutions,  I am  expected  to  be  present 
in  order  to  check  out  the  old  treasurer  before  the  funds  are  transferred. 
Another  improvement,  for  which  the  State  administration  is  entitled 
to  credit,  is  changing  the  form  of  the  omnibus  appropriation  bill, 
by  requiring  uniform  blanks  for  itemizing  traveling  expenses.  In 
order  to  make  each  person  responsible  for  expenditures,  every  such  bill 
has  to  be  certified  to  as  follows: 

“I  certify  that  the  above  account  is  correct  and  just;  that  the  detailed 
items  charged  within  are  taken  and  verified  from  a memorandum  kept  by 
me;  that  the  amounts  charged  for  subsistence  were  actually  paid,  and  the 
expenses  were  occasioned  by  oificial  business  or  unavoidable  delays,  requiring 
my  stay  at  hotels  for  the  time  specified;  that  I performed  the  journey  with 
ali  practicable  dispatch,  by  the  shortest  route  usually  traveled,  in  the  custo- 
mary reasonable  manner,  and  that  I have  not  been  furnished  with  transpor- 
tation, or  money  in  lieu  thereof,  for  any  part  of  the  journey  herein  charged 
for.” 

The  system  of  accounts  is  not  perfect,  but  we  are  doing  all  in  our 
power  to  bring  it  up  to  the  highest  standard. 

It  is  noteworthy  that  during  the  Governor’s  administration  there  has 
been  no  shortage  in  the  accounts  of  any  of  the  officials  of  the  State  char- 
itable institutions.  The  records  are  clean  and  the  Governor’s  steward- 
ship in  this  respect  has  been  well  discharged. 

Appropriations. 

It  is  not  my  wish  to  bore  you  with  statistics,  but  for  the  infornitstion 
of  those  who  desire  to  know  how  much  the  State  of  Illinois  appropriates 
each  year  for  its  unfortunates,  and  the  number  cared  for,  I may  say  that 
the  last  General  Assembly  appropriated  liberally  for  the  institutions. 
For  the  next  two  years  it  appropriated  the  sum  of  $6,588,402  for  the 
seventeen  charitable  institutions,  and  the  sum  of  $1,  466,100,  for  the 
reformatory  and  correctional  institutions,  besides  appropriating  $500,000 
for  a new  penitentiary  site,  making  a grand  total  of  $8,534,502  for 
charitable  and  correctional  purposes. 

Population  of  Institutions. 

On  the  first  day  of  July  of  this  year  there  were  9,659  insane  in  the 
State  hospitals,  and  3,815  inmates  in  the  other  institutions  under  the 
jurisdiction  of -the  State  Board  of  Charities. 

On  the  same  date  the  penitentiary  at  Joliet  contained  1,584  convicts; 
the  penitentiary  at  Chester  had  a population  of  976.  The  reformatory 
at  Pontiac  cared  for  1,080  boys,  making  a total  cared  for  in  the  twenty 
institutions  of  17,114. 


11 


In  conclnsion,  permit  me  to  add,  that  the  cooperation  of  the  so-called 
^^minor^^  employes  is  far  from  a “^hninor^^  factor,  in  successful  administra- 
tion. ^^0  one  can  come  much  in  contact  Avith  the  State  institutions  with- 
out learning  that  the  employes  are  doing  noble  work  in  relieving  the 
suffering  of  the  poor  unfortunates,  and  in  many  cases  for  a compensa- 
tion Avhich  is  ‘'^moderate’^  to  say  the  least.  This  summary  of  institu- 
tional requirements  would  be  incomplete  without  a word  of  recognition 
for  their  self-sacrifice,  and  praise  for  their  growing  enthusiasm. 


12 


REPORT  ON  THE  NEW  YORK  FINANCIAL  SYSTEM 
FOR  MANAGEMENT  OF  STATE  INSTITUTIONS 
MADE  TO  GOVERNOR  DENEEN,  APRIL 
3,  1908,  BY  FRANK  D.  WHIPP. 


Honorable  Charles  S.  Deneen, 

Go'ver’nor  of  Illinois,  Spiingfield. 


April  3,  1908. 


Sir  : I returned  last  night  from  New  York  where  I have  been  looking 
into  the  system  of  management  of  the  State  institutions.  On  Monday 
and  Tuesday  I was  in  Albany  visiting  various  departments  in  the  State 
House  and  on  Wednesday  in  New  York  City  at  the  office  of  the  Pur- 
chasing Steward  on  Ward’s  Island.  I furnish  a memorandum  report 
as  follows: 


New  A^ork  State  Institutions. 


The  financial  affairs  of  the  New  York  State  institutions  are  managed 
in  three  groups.  Thirteen  of  the  institutions  which  are  for  the  care  and 
custody  of  the  insane  are  supervised  by  the  State  Commission  in  Lunacy, 
seventeen  State  charitable  institutions  are  under  the  Fiscal  Supervisor 
for  State  charitable  institutions  and  four  prisons,  one  reformatory  and 
two  institutions  for  insane  criminals  are  under  the  jurisdiction  of  the 
superintendent  of  State  prisons. 

All  employes  of  institutions  are  under  civil  service  and  their  salaries 
are  fixed  upon  a uniform  basis  by  a commission  consisting  of  some  of  the 
State  officers. 

The  financial  system  for  each  group  of  institutions  referred  to  above 
is  described  as  follows : 

Commission  in  Lunacy — This  commission  consists  of  three  members, 
one  physician,  one  attorney,  and  one  reputable  citizen.  The  president 
of  the  commission  receives  a salary  of  $7,500  per  annum.  Each  of  the 
other  commissioners  receives  an  annual  salary  of  $5,000.  They  are  ap- 
pointed by  the  Governor.  The  commission  is  provided  with  a secretary, 
auditor  and  a clerical  force.  The  financial  affairs  of  thirteen  institutions 
are  controlled  by  this  commission.  The  names  of  these  institutions  are 
as  follows : 

Utica  State  Hospital,  in  the  City  of  Utica,  in  the  county  of  Oneida. 

Willard  State  Hospital,  in  the  town  of  Ovid,  in  the  county  of  Seneca. 


13 


Hudson  River  State  Hospital,  near  the  city  of  Poughkeepsie,  in  the  county 
of  Dutchess. 

Buffalo  State  Hospital,  in  the  city  of  Buffalo,  in  the  county  of  Erie. 

Middletown  State  Homeopathic  Hospital,  in  the  city  of  Middletown,  in  the 
county  of  Orange. 

Binghampton  State  Hospital,  in  the  city  of  Binghampton,  in  the  county  of 
Broome. 

Rochester  State  Hospital,  in  the  city  of  Rochester,  in  the  county  of  Monroe. 

Saint  Lawrence  State  Hospital,  in  the  city  of  Ogdensburg,  in  the  county  of 
Saint  Lawrence. 

Gowanda  State  Homeopathic  Hospital,  in  the  town  of  Collins,  in  the  county 
of  Erie. 

Long  Island  State  Hospital,  at  Flatbush,  in  the  borough  of  Brooklyn  in  the 
city  of  New  York. 

Manhattan  State  Hospital,  on  Ward’s  Island,  in  the  city  of  New  York. 

King’s  Park  State  Hospital,  at  King’s  Park,  in  the  county  of  Suffolk. 

Central  Islip  State  Hospital,  at  Central  Islip,  in  the  county  of  Suffolk. 

All  supplies  are  bought  by  purchasing  stewards.  There  is  one  pur- 
chasing steward  for  four  of  the  largest  institutions  in  the  State.  He 
has  an  office  in  N'ew  A"ork  City  which  is  located  on  Ward’s  Island.  Each 
of  the  other  institutions  also  have  purchasing  stewards.  The  supplies 
are  purchased  subject  to  the  approval  of  the  institution  superintendents. 
The  law  requires  quarterly  estimates  to  be  filed  by  the  institutions 
with  the  Commission  in  Lunacy  showing  a list  of  the  supplies  to  be  pur- 
chased. These  are  filled  monthly.  The  estimates  are  subject  to  re- 
vision by  the  Commission  in  Lunacy  and  the  approval  of  the  State  Comp- 
troller. No  money  can  be  drawn  from  the  State  treasury  unless  the 
estimate  is  certified  to.  There  is  one  treasurer  for  the  thirteen  institu- 
tions and  he  resides  at  the  capital  of  the  State.  When  estimates  have  been 
properly  certified  to  the  money  is  deposited  by  the  State  treasurer  with 
the  treasurer  for  the  institutions  to  pay  employes  and  bills  incurred. 
Each  institution  is  allowed  to  include  $1,000  in  their  estimate  for  which 
no  details  have  to  be  shown.  The  institution  treasurer  remits  to  the 
superintendent  the  total  amount  of  each  monthly  payroll  and  he  pays 
each  individual  in  cash. 

A purchasing  committee  of  the  stewards  meets  every  three  months  to 
receive  bids  for  staple  articles  bought  in  large  quantities  and  all  con- 
tracts made  therefor  must  have  the  approval  of  the  Commission  in  Lun- 
acy. Proposals  are  sent  out  by  mail  to  a number  of  firms  and  samples  are 
submitted.  The  committee  has  standard  samples  on  hand  and  the  sam- 
ples submitted  by  the  different  firms  must  grade  up  to  standard.  No 
advertisements  are  inserted  in  newspapers  asking  for  bids. 

The  Commission  in  Lunacy  appoints  an  attorney  for  each  hospital. 

All  of  the  institutions  are  required  to  remit  all  receipts  from  mis- 
cellaneous sources  to  the  State  treasurer  once  a month. 

Comparative  Statement — A comparison  of  the  expenses  of  the  New 
York  institutions  for  the  care  and  treatment  of  insane  with  like  institu- 
tions in  Ilinois  show  that  for  the  year  1907,  New  York  with  thirteen  in- 
stitutions and  a population  of  26,618  insane,  cost  $183.83  per  capita, 
while  Illinois  with  six  institutions  and  a population  of  9,214,  cost  $158.54 
per  capita  or  $25.29  less  than  New  York.  This  shows  that  the  per  capita 
cost  of  maintaining  the  insane  in  Illinois  is  approximately  fourteen 
per  cent  lower  than  it  is  in  the  State  of  New  York. 


14 


In  New  York  $76.05  per  capita  is  expended  for  salaries  and  wages, 
while  in  Illinois  it  cost  $59.67  or  $16.38  lower.  The  New  York  per 
capita  cost  for  this  classification  is  41.4  per  cent  of  the  total  expenditures 
and  in  Illinois  it  is  37.7  per  cent. 

The  food  supplies  in  New  York  cost  $54.56  per  capita  and  in  Illinois 
$45.33  or  $9.38  lower.  This  is  29.7  per  cent  of  New  YorFs  total  expen- 
ditures and  28.6  per  cent  of  the  cost  of  Illinois. 

Illinois  expends  more  per  capita  for  clothes  than  New  York.  In  New 
York  it  costs  $9.34  and  in  Illinois  $11.94  or  $2.60  more  than  New  York. 
The  percentages  of  the  total  expenditures  on  this  item  are  New  York 
5.1  per  cent  and  Ilinois  7.5  per  cent. 

Illinois  also  expends  more  pc/r  capita  for  medical  supplies.  It  costs 
$1.17  in  New  York  and  $2.08  in  Illinois  or  91  cents  more  in  Illinois. 
The  percentage  of  the  total  on  this  classification  is  New  York  .6  per 
cent  and  Illinois  1.3  per  cent. 

Fuel,  light  and  water  cost  $17.84  per  capita  in  New  York  and  $13.49 
in  Illinois  or  $4.38  lower  in  Illinois.  The  percentage  of  this  item  is  New 
York  9.7  per  cent  and  Illinois  8.5  per  cent. 

Other  miscellaneous  ■ classifications  of  expense  cost  New  York  $24.84 
per  capita  and  Ilinois  $26.03  or  $1.19  more  in  Illinois  than  New  York. 

The  percentages  on  this  are  New  York  13.5  per  cent  and  Illinois  16.4 
per  cent.  A tabulated  statement  is  attached  showing  the  per  capita  cost 
referred  to  and  the  percentages. 

Each  hospital  for  the  insane  has  a local  board  of  trustees  but  its 
powers  are  only  advisory.  At  one  time  these  boards  were  all  al)olished 
but  owing  to  public  sentiment  the  boards  were  reinstated. 

Fiscal  Supervisor  por  State  Charities. 

The  seventeen  institutions  under  the  jurisdiction  of  this  official  are: 


Western  House  of  Refuge  for  Women  ....Albion 

State  School  for  the  Blind  Batavia 

Soldiers’  and  Sailors’  Home  Bath 

New  York  State  Reformatory  for  Women  Bedford 

New  York  State  Reformatory  Elmira 

New  York  State  Training  School  for  Girls  Hudson 

Thomas  Asylum  Iroquois 

New  York  State  Woman’s  Relief  Corps  Home  Oxford 

New  York  State  Custodial  Asylum  Nevmrk 

New  York  House  of  Refuge  Randall’s  Island 

New  York  State  Hospital  for  Incipient  Tuberculosis  Raybrook 

State  Industrial  School  Rochester 

Rome  State  Custodial  Asylum  Rome 

Craig  Colony  for  Epileptics  Sonyea 

New  York  State  Institution  for  Feebleminded  Children  Syracuse 

New  York  State  Hospital  for  the  Care  of  Crippled  and  Deformed 

Children  Tarrytown 

Eastern  New  York  Reformatory  Napanoch 


The  Fiscal  Supervisor  of  State  Charities  is  appointed  by  the  Governor 
and  receives  an  annual  salary  of  $6,000  per  annum.  He  is  provided  with 
an  office  in  the  Capitol  building  and  clerical  assistance. 

He  has  power  to  examine  into  all  matters  relating  to  the  financial 
affairs  of  these  institutions. 


15 


Estimates  similar  in  character  to  those  used  by  the  institutions  for  the 
insane  are  furnished  by  the  charitable  institutions  and  are  subject  to 
revision  by  the  Fiscal  Supervisor.  The  Fiscal  Supervisor  invites  bids 
for  staple  articles  purchased  in  large  quantities  which  are  bought  jointly 
by  the  institution  superintendents  and  boards  of  managers.  Committees 
are  appointed  from  the  superintendents  and  boards  of  managers  to  make 
these  purchases  subject  to  the  approval  of  the  fiscal  supervisor.  All  of 
the  institutions  have  local  treasurers  but  in  some  cases  the  superinten- 
dent acts  in  that  capacity.  Each  institution  has  a board  of  trustees  but 
their  powers  are  only  advisory. 

The  plans  for  all  buildings  have  to  be  submitted  to  the  Governor  for 
his  approval. 

Other  requirements  of  the  law  are  similar  in  character  to  those  de- 
scribed for  the  hospitals  for  the  insane. 

Superintendent  of  State  Prisons. 

The  institutions  under  this  official  are : 

Sing  Sing  Prison. 

Auburn  Prison  for  Men, 

Auburn  Prison  for  Women. 

Clinton  Prison. 

Eastern  New  York  Reformatory. 

Matteawan  State  Hospital  for  Insane  Criminals. 

Dannemora  State  Hospital  for  Insane  Convicts. 

Supplies  are  purchased  on  the  estimate  system  the  same  as  used  by  • 
the  other  institutions.  The  warden  or  medical  superintendent  does  the 
buying.  Every  bill  or  estimate  has  to  be  approved  by  the  Superintendent 
of  Prisons  and  by  the  State  Comptroller.  The  money  for  the  payment  of 
bills  is  deposited  to  the  credit  of  the  warden  or  the  institution  treasurer 
as  the  case  may  be.  The  law  does  not  require  officials  to  advertise  for  bids. 

The  industrial  funds  of  the  prisons  in  the  hands  of  the  wardens  can 
only  be  checked  out  by  them.  Each  check  has  to  be  countersigned  by  the 
State  Comptroller.  The  State  Comptroller  can  order  the  warden  to 
remit  to  the  State  treasurer  such  amounts  as  are  not  needed  for  the  in- 
dustries. 

In  reading  the  prison  law  for  the  state  of  l^ew  York  I found  one  sec- 
tion which. appeared  to  me  to  be  quite  out  of  the  ordinary.  It  is  as 
follows : 

“The  prisoners  shall  be  supplied  vuth  a sufficient  quantity  of  inferior  but 
wholesome  food.” 

I believe  an  improvement  could  he  made  in  the  Illinois  system  regu- 
lating the  finances  of  the  State  institutions.  There  should  i)e  some  su- 
pervising control  over  the  expenditures  and  this  could  be  done  without 
materially  changing  the  organization  as  it  exists  today.  Some  changes 
could  be  made  in  our  law  and  the  office  of  Fiscal  Supervisor  could  be 
created.  Respectfully  submitted, 

F.  D.  WlIIPP; 

Department  and  Institution  Auditor, 


16 


Comparative  Statement. 

Expenses  of  New  Yoi’h  Institutions  for  the  Care  and  Treatment  of  In^ 
sane  compared  with  Illinois  Institutions  for  Insane,  for  year  1907. 


Total  per  capita  cost  thirteen  New  York  institutions  (gross) : $183  83 

Total  per  capita  cost  six  Illinois  institutions  (gross) 158  54 

Illinois  institutions  cost  less  per  capita $25  29- 

Per  cent  of  decrease,  approximately 14?S 


Classification. 

New  York  (Av. 
population  26,618) .. 

Illinois  (Average 
population  9,214). 

Illinois  increase 
over  New  York 

Illinois  decrease 
over  New  York 

Percent  of  expendi- 
tures in  New  York. 

Percent  of  expen- 
ditures in  Illinois... 

Salaries  and  wages 

$76  05 

$59  67 

$16  38 

41.4 

37.7 

Knod  supplies  

54  56 

45  33 

9 23 

29.7 

28.6 

Clothing  and  bedding 

9 34 

11  94 

$2  60 

5.1 

7.5 

Medical  supplies 

1 17 

2 08 

91 

0.6 

1.3 

Fuel,  light  and  water 

17  87 

13  49 

4 38 

9.7 

8.5 

Miscellaneous  expenses 

24  84 

26  03 

1 19 

13.5 

16.4 

Totals 

$183  83 

$158  54 

$4  70 

$29  99 

lOOf. 

100^ 

